The incentives Iowa offers to lure and retain businesses could be on the chopping block if the Legislature can pass comprehensive tax reform, the state's top economic development official said this week.

Debi Durham, director of the Iowa Economic Development Authority, said she's willing to discuss paring down some of her department's incentive programs if the Legislature approves tax relief for Iowa businesses.

Tax reform, particularly tax relief, is expected to be among the top priorities for the Republican-controlled Legislature in 2018.

"First of all, you'll always have incentives," Durham said Monday after her department's budget hearing with Gov. Kim Reynolds. Durham pointed to South Dakota, which offers incentive programs despite boasting a more competitive tax environment than Iowa.

"South Dakota has zero corporate income taxes," she said. "You still need incentives, but they can look different."

Durham told reporters that her agency's High Quality Jobs program could be fodder for cuts amid budget talks with lawmakers. She described that $105 million program as a "defensive mechanism," designed to compensate for Iowa's noncompetitive tax climate.

"I've always said I'd be the first at the table with real tax reform," she said, "that you can see our incentives pared down and they should look different."

But Durham said the department's Research Activities Tax Credit shouldn't be cut. She described that as a "very progressive, proactive" incentive program that drives specific behavior: investment in R&D.

"Because you want those jobs here," she said. "You want those innovations."

Durham's message diverged from one pushed by Iowa business leaders last week.

The Iowa Chamber Alliance, which represents the state's 16 largest chambers of commerce, said it would push for corporate tax relief. But Executive Director John Stineman said the state should keep its economic development incentive programs intact.

Unlike other tax credit programs, he said economic development incentives are proven to work because they stimulate job creation and business expansion.

"They have demonstrated return, and that does make them different. And that’s where it’s frustrating when we have this broad discussion about tax credits when we don’t believe all tax credits are created equally," Stineman told the Des Moines Register editorial board. "And furthermore, for these programs, these were strategic decisions to try to get certain kinds of spending in Iowa or investment in Iowa. And you can’t say that for every other one.”